KARACHI: The exchange rate of Ripple (XRP) in Pak Rupee (PKR) is Rs90.95 on August 01, 2022 at 09:00 AM Pakistan Standard Time (PST), in the open exchange market.
(more…)Author: Mrs. Anjum Shahnawaz
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Pakistan State Oil gets Rs30 billion to avoid default
ISLAMABAD: An amount of Rs30 billion has been approved for Pakistan State Oil (PSO) to avoid payment default.
The approval has been given at a meeting of Economic Coordination Committee (ECC), which was held in Islamabad on Sunday with Minister for Finance and Revenue Miftah Ismail in the chair.
READ MORE: PSO posts massive growth of 245% in six months
For the smooth continuity of oil and gas national supply chain and avoid PSO from being default on international payments, the ECC decided to clear the outstanding payments accumulated during the period of pervious government and approved an amount of Rs30 billion rupees as supplementary grant for PSO receivables.
It was also decided in the meeting that Power Division will make immediate payments of the current outstanding amounts of Rs20 billion by tomorrow [August 01, 2022] and Rs12.8 billion by August 04, 2022.
READ MORE: Pakistan decides to lift ban on imported goods
The ECC also directed Finance Division and FBR to submit proposal for generation of Rs30 billion through taxes within a week.
On another summary of Petroleum Division on price mechanism of petroleum products, the ECC accepted the proposal to use the average of exchange rate for the relevant period rather than the exchange rate of the last day for the current as well as future price determinations.
READ MORE: ECC approves petroleum dealer margin at Rs7/liter
The ECC directed Petroleum Division to work out options in consultation with OGRA for setting up petroleum product prices within a week.
The ECC directed the Petroleum Division to submit a proposal within a week to regulate the prices of Kerosene Oil and Light Diesel Oil after consultation with relevant stakeholders.
READ MORE: Pakistan allows release of banned items stuck up at ports
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Pakistan decides to lift ban on imported goods
ISLAMABAD: Pakistan on Thursday decided to lift the ban imposed on imported goods except for Completely Built Unit (CBU) of motor vehicles, mobile phones and home appliances.
A review meeting was held to review the ban after two months owing to serious concerns raised by major trading partners on the imposition of ban and considering the fact that the ban has impacted supply chains and domestic retail industry.
READ MORE: 15% surcharge imposed for clearance of banned items
In the light of fact that imports substantially reduced due to consistent efforts of the government, the Economic Coordination Committee of the Cabinet (ECC) decided to lift the ban on imported goods except for Auto CBU, Mobile CBU and Home Appliances CBU.
The committee also decided that all held up consignments (except items which still remain in banned category) which arrived at the ports after July 01, 2022 may be cleared subject to payment of 25 per cent surcharge.
Ministry of Commerce submitted a summary on prohibition/complete quantitative restrictions on import of non-essential and luxury items.
It was submitted that in order to curtail the rising current account deficit (CAD), ban on the import of about 33 classes/categories of goods was imposed with the approval of the Cabinet.
READ MORE: Pakistan allows release of banned items stuck up at ports
Due to the decision, the overall imports of the banned items have shrunk by over 69 per cent i.e. from $ 399.4 million to $ 123.9 million.
Recently, the ministry of commerce had imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.
The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.
The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.
However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.
READ MORE: KCCI demands release of stuck up containers
The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.
However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.
According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.
Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.
Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.
READ MORE: Committee recommends lifting import ban on luxury items
Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.
Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.
In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.
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ECC approves petroleum dealer margin at Rs7/liter
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved to fix petroleum dealers margin at Rs7 per liter for petrol and high speed diesel.
The decision has been taken at a meeting of the ECC presided over by Finance Minister Miftah Ismail on Thursday.
The Petroleum Division submitted a summary on revision of Oil Marketing Companies (OMCs) and dealers margins on petroleum products.
READ MORE: Pakistan allows release of banned items stuck up at ports
It was informed that the existing margins were fixed in December, 2021 and Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries and utility bills, etc.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Planning, Development and Special Initiatives Prof. Ahsan Iqbal, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Power , Khurram Dastgir Khan, Federal Minister for National Food Security and Research Chaudhary Tariq Bashir Cheema, Shahid Khaqan Abbasi – MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Rana Ihsan Afzal, Coordinator to the PM on Commerce and Industry, Coordinator to the PM on Economy, Bial Azhar Kayani, Federal Secretaries and senior officers attended the meeting.
READ MORE: SBP makes permission mandatory for motor car import
Ministry of National Food Security and Research submitted a summary on urgent advice relating to award of 4th International Wheat Tender 2022 opened on 25th July, 2022.
It was informed that Trading Corporation of Pakistan (TCP) issued 4th tender on 19-05-2022 for securing quantity of 200,000 MT of imported wheat on CFR basis.
The tender was opened on 25-07-2022 wherein six (06) international suppliers participated, out of which 05 offered rates. The ECC after detailed discussion approved the lowest bid offered by M/s Falconbridge FZLLC@ US$ 407.49/MT CFR bulk on sight LC basis with direction to TCP to negotiate with the Russian authorities to procure wheat on lower rate subject to confirmation of the ECC.
Ministry of Water Resources submitted a summary on compensation package for the Chinese causalities at Dasu Hydro Power project.
READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022
The ECC decided that the amount of compensation/ good will package will remain the same as per ECC’s earlier decision dated January 21,2022 ( i.e US$ 11.6 million) and approved disbursement of the compensation/goodwill amount directly to the company M/s China Gezhouba Group International Engineering Co. Ltd (CGGC) through Ministry of Foreign Affairs.
The Ministry of Industries and Production submitted a summary on issues faced by Fatima Fertilizer (Sheikhupura Plant) and Agritech.
Both the SNGPL based plants are operated by provisioning of RLNG on cost sharing basis. Gas rate for operation of these plants is worked out on the basis of Variable Contribution Margin (VCM).
Due to price increase in fuel prices and other factors, both plants have approached M/o I&P for revision of VCM and capping of GST at the price paid by the plants.
READ MORE: CMOs worry over power outages, 100% cash margin on imports
The ECC after discussion approved the proposal to ensure compliance with the earlier decision of the ECC and the Federal Cabinet of shifting both the plants to indigenous gas.
The committee further directed Ministries of Petroleum, Finance, National Food Security and Industries & production to work out the gas price/VCM for the Fertilizers. The ECC also decided that Sales tax may be charged on the actual price of the gas being paid by the company.
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Pakistan approves LNG at $9 per MMBTU for export sector
ISLAMABAD: Pakistan on Monday approved a rate of $9 per MMBTU for supply of LNG to export sector across the country.
The country’s apex economic coordination body approved the rates to provide competitive environment to the export sector at par with regional economies.
READ MORE: NEPRA to conduct public hearing on KE’s petition on July 28
Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division, on Monday.
Federal Minister for Defence Khawaja Muhammad Asif, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Federal Minister for Power Khurram Dastgir Khan, Shahid Khaqan Abbasi – MNA, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Mr. Musadik Masood Malik, Rana Ihsan Afzal, Coordinator to PM on Commerce & Industry, Federal Secretaries and senior officers attended the meeting.
READ MORE: Revised power tariff, taxes on electricity bills in Pakistan
Ministry of Commerce presented a summary on regional competitive energy rates for export oriented sectors during financial year 2022-23.
It was submitted that in pursuance of the decisions of ECC dated August 16, 2021 and the Federal Cabinet dated August 24, 2021, the government provided energy to the export oriented sectors namely Textile including Jute, Leather, Carpet, Surgical and Sports goods at regional competitive rates to reduce cost of manufacturing and enhance exports.
The ECC after detailed discussion approved RLNG rate at US $9 per MMBTU, all inclusive to five export oriented sectors across Pakistan for existing gas connections.
READ MORE: K-Electric, Siemens sign deal for KKI Grid construction
A subsidy cover of Rs. 40 billion for RLNG has been allocated under Federal budget 2022-23 which will be reviewed on quarterly basis.
Further, ECC recommended to the Federal Cabinet to raise the tariff of indigenous gas for export oriented sectors at Rs. 1350 per MMBTU and for general industry at Rs. 1550 per MMBTU.
The ECC also approved the electricity rate at US cents 9 per kWh to five export oriented sectors from 1st August 2022 subject to (i) subsidy of Rs. 20 billion provided by Finance Division (ii) quarterly review of the subsidy (iii) Petroleum Division will provide a list of industrial units getting subsidized gas and electricity, within one month to the ECC for review.
READ MORE: Rupee devaluation severely affects KE’s profitability
The committee approved supplementary grant of Rs750 million for Ministry of Information and Broadcasting for 75 years’ Independence Day celebrations.
The ECC also approved proposal of Ministry of Interior for payment of compensation/goodwill package from its own budget.
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15% surcharge imposed for clearance of banned items
ISLAMABAD: Pakistan has imposed surcharge up to 15 per cent for clearance of consignments stuck up at ports and were banned for saving foreign exchange.
The ministry of commerce issued an office memorandum dated July 22, 2022 pursuance to the federal cabinet decision to release the consignments of prohibited items.
READ MORE: Pakistan allows release of banned items stuck up at ports
The government through SRO 598(I)/2022 dated May 19, 2022 imposed a complete ban on the import of luxury and non-essential items.
However, a large number of containers were stuck up at ports that were arrived after the imposition of ban.
The Federal Cabinet on July 15, 2022 allowed the release of all those consignments/shipment which had been imported in violation of SRO 598(I)/2022 dated May 19, 2022 and were pending customs clearance.
READ MORE: KCCI demands release of stuck up containers
However, this clearance was subject to condition that consignments had landed at any port including sea, air or dry port of the country on or before June 30, 2022 subject to payment of surcharge to be imposed on the cost and freight value of goods.
According to the ministry of commerce, five per cent surcharge has been imposed on the shipment which had arrived within two weeks of issuance of the SRO 598(I)/2022.
Further, 15 per cent surcharge has been imposed on shipment which had arrived after two weeks of issuance of SRO 598(I)/2022 till June 30, 2022.
Due to the ban about one thousand containers piled up and resulted in choking the ports. The stakeholders requested the government to allow the release of those consignments as many of the consignments were shipped before May 19, 2022 but lander after the date.
READ MORE: Committee recommends lifting import ban on luxury items
Previously, the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Tuesday July 5, 2022 allowed one-time release of those consignments carrying banned items and reached on or before June 30, 2022.
Ministry of Commerce submitted a summary to seek permission for one time release of those consignments of items banned on May 19, 2022 which have reached Pakistan or would reach or their payments.
In order to resolve the hardship cases, the ECC granted one-time special permission for release of consignments stuck at the ports due to contravention framed under SRO 598(I)/2022 dated May 19, 2022, only for those consignments which have landed at ports or airports in Pakistan on or before June 30, 2022.
READ MORE: Raw materials excluded from import banned items list
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FBR starts filling 502 vacancies in Inland Revenue
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday invited applications for new 502 vacancies against the jobs from grade 1 to grade 15 the Inland Revenue.
According to the notification the FBR would advertise for filling up 502 posts in BS-1 to 15 in seventeen (17) Inland Revenue field formations of FBR.
READ MORE: FBR posts Ansari as Member Customs Operations
As the applicants have to apply online through National Job Portal being maintained by National Information Technology Board (NITB.
According to the general instructions the eligible candidates are advised to apply online through National Job Portal Link https://nip.gov.pk. No manual or hard copy of application will be accepted by any office. Candidates applying for more than one post should apply online for each post separately.
READ MORE: Commodities’ illegal movement to be treated as smuggling
Vacancies for BS-I to 5 shall ordinarily be filled on local basis in terms of Rule 16 of Civil Servants (Appointment, Promotion & Transfer) Rules, 1973, whereas vacancies for BS-6 to 15 shall be filled by appointment of persons domiciled in the respective province or region of each office strictly under Rule 15 of the aforesaid rules and instructions issued by the Establishment Division from time to time.
Candidates will be required to bring original documents (Educational, domicile and Experience Certificate etc) alongwith one set of all attested copies of documents at the time of test/interview.
Screening tests and skills tests (where required) will be conducted as per recruitment policy of the Federal Government. Besides screening test for the post of Sepoy, physical fitness i.e. height and chest of the candidates at the requisite standard, shall also be mandatory.
READ MORE: Special tax regime for pharma sector introduced
The contract employees (85-1 to 15), who were appointed under the Family Assistance Package for the families of Government employees, who died while in service, may also apply online for any of the above post, if they desire so, subject to their eligibility.
10% quota for women, 5% quota for minorities (non-Muslims) and 2% quota for disabled persons shall also be strictly observed by each office as per Government instructions. Disabled persons will have to submit a Certificate as proof of disability, duly issued by recognized Social Welfare Board/office or other authorized Government organization, at the time of test/interview.
The FBR reserves the right not to fill any vacancy or to reduce the number of vacancies, if the circumstances so warranted at the time of final selection.
READ MORE: Defacing sales tax invoice declared as offence
The candidates working in Public Sector Departments/Organizations shall have to submit Departmental Permission Certificates from the respective employers at the time of test/interview, failing which they will not be allowed to participate in test/interview process.
In addition to 05 years general upper age relaxation by the Government, further upper age relaxation shall be restricted up to the following categories of candidates, as per relevant rules/policy of the Federal Government.
Minimum and Maximum age shall be calculated on the closing date of receipt of applications.
Information provided in the online Application Form will be verified. In case of any false or forged information, FBR reserves the right to cancel candidature of any candidate at any stage (even after employment, if so revealed later) and to initiate legal action against the applicant.
Only short-listed candidates will be called for test/ interview. All the candidates will be allowed to appear in the test/interview on provisional basis, subject to detailed scrutiny of their eligibility as per relevant criteria.
No TA/ DA will be admissible for the Test/ Interview.
The candidates may apply online within 15 days from the date of publication of this Advertisement in the press. Applications received after 15 days of publication of Advertisement will not be entertained.
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Pakistan grants 5-year tax exemption to promote film industry
ISLAMABAD: Pakistan has granted five-year tax exemption on income derived from cinema operations in order to promote local film industry.
The tax exemption has been granted under Income Tax Ordinance, 2001 by amendment made through Finance Act, 2022.
READ MORE: Advance tax on immovable property enhanced by 100%
The Federal Board of Revenue (FBR), the apex tax collecting agency of Pakistan, issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments introduced through the Finance Act, 2022 to the Income Tax Ordinance, 2001.
The FBR said that in order to promote local film industry, following new measures have been introduced:
(i) Five years tax exemption has been granted by inserting clause (151) in Part I of Second Schedule to the Income Tax Ordinance 2001 to a person who derives any income from cinema operations, starting from the commencement of cinema operations.
READ MORE: FBR explains changes in advance tax on motor vehicles
(ii) Through insertion of clause (153) in Part I of Second Schedule to the Ordinance, exemption has been granted to profit and gains derived by a resident producer or a resident production house from production of feature films during the period from July 01, 2022 to June 30, 2027.
READ MORE: Pakistan introduces automated system for withholding tax payments
(iii) Similarly, exclusion from provisions of section 148 of the Income Tax Ordinance, 2001 has been provided through insertion of Clause (12P) in Part IV of Second Schedule on import of machinery and equipment as listed in serial no. 32 of Part-I of Fifth Schedule to the Customs Act, 1969 subject to the conditions and limitations specified therein.
(iv) Moreover, through insertion of clause (43H) in Part IV of Second Schedule, exclusion from the provisions of clause (b) of sub-section (1) of section 153 has been provided to an exhibitor or a distributor of a feature film, as payer, on payment made to a distributor, producer or importer of feature film.
READ MORE: Tax imposed on foreign payments made by exchange companies
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Advance tax on immovable property enhanced by 100%
ISLAMABAD: The rate of advance tax on sale and purchase of immovable property has been enhanced by 100 per cent.
The tax rate has been enhanced on property transaction through Finance Act, 2022.
READ MORE: FBR explains changes in advance tax on motor vehicles
The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain major amendments brought through Finance Act, 2022 to Income Tax Ordinance, 2001.
The FBR said that the rate of advance tax on sale or transfer and on purchase or transfer of immovable property has been enhanced from 1 per cent to 2 per cent.
READ MORE: Pakistan introduces automated system for withholding tax payments
Moreover, sub-section (3) of section 236C of the Income Tax Ordinance, 2001 has been omitted.
“Now advance tax on sale or transfer of immovable property will be collected under this section irrespective of holding period,” the FBR added.
READ MORE: Tax imposed on foreign payments made by exchange companies
Meanwhile, in case of purchaser of immovable property who is not appearing on the active taxpayers list, rate of tax to be collected under section 236K of the Income Tax Ordinance, 2001 will increase by two hundred and fifty (250) per cent of the rate specified in Division XVIII of Part IV of First Schedule.
Necessary change has been incorporated in rule 1 of Tenth Schedule to the Income Tax Ordinance 2001, the FBR added.
READ MORE: Minimum tax for commercial importers enhanced: FBR
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FBR explains changes in advance tax on motor vehicles
ISLAMABAD: The Federal Board of Revenue (FBR) has explained changes made to advance tax on motor vehicles through Finance Act, 2022.
The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments brought through Finance Act, 2022 to the Income Tax Ordinance, 2001.
The FBR said that provision of section 231B of Income Tax Ordinance, 2001 was limited to private motor vehicles. The scope of withholding tax has now been enhanced though omission of the word ‘private’ from the heading and elsewhere in the section.
READ MORE: Pakistan introduces automated system for withholding tax payments
Further, an inclusive definition of motor vehicle has been provided in the substituted sub-section (7) of section 231B with following exclusions:
(i) a motor vehicle used for public transportation, carriage of goods and agriculture machinery;
(ii) a rickshaw or a motorcycle rickshaw and
(iii) any other motor vehicle having engine capacity up to 200cc.
READ MORE: Tax imposed on foreign payments made by exchange companies
Except motor vehicles mentioned at i, ii and iii above, provision of section 231B will apply on motor vehicles of all makes and models irrespective of its private or commercial use by the end users.
The FBR further said that the withholding tax amount required to be collected at the time of purchase or registration of motor vehicle has been enhanced with engine capacity of 1601cc and above.
In cases of electric vehicles where engine capacity of a vehicle is not available and value of vehicle is rupees five million or more, the amount of tax collected will be 3 per cent of import value as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles.
READ MORE: Minimum tax for commercial importers enhanced: FBR
Rates of tax required to be collected at the time of transfer of registration or ownership of a motor vehicles have been provided in clause (2) in the Table in Division VII of Part IV of First Schedule of the Ordinance.
A new proviso has been inserted whereby a vehicle in which engine capacity is not applicable (electric vehicles) and the value of said vehicle is rupees five million or more, then tax amount of rupees twenty thousand will be collected at the time of transfer of registration or ownership of such vehicle.
READ MORE: Tax through electricity connections on retailers, service providers
In case of a person not appearing in active taxpayer list, tax collectible under this section will increase by two hundred percent. Necessary change has been incorporated in rule 1 of Tenth Schedule of the Ordinance, the FBR added.